25 Ways Our Brains Trick Us

Recently, I read a specific chapter of Poor Charlie's Almanack, a book written by Charles Munger, Vice Chairman of Berkshire Hathaway. Now I feel a strong desire to spread the summary of the chapter.

After understanding the 25 tendencies of human misjudgment, we certainly will make better decisions in our lives. Here you go with the summary with examples:-

1. Reward and Punishment Super Response tendency: This refers to the tendency to learn certain behaviors in response to rewards and punishments.

Example - Ivan Pavlov’s experiment with classical conditioning in dogs. By ringing a bell before feeding the dogs, he conditioned them to associate the sound of the bell with food and salivate at the sound alone.

Link: https://www.simplypsychology.org/pavlov.html

Book: Ivan Pavlov: The Life and Legacy of the Famous Russian Psychologist

2. Liking/Loving Tendency: This tendency refers to the tendency to form strong bonds with those who provide emotional support.

Example - The Nazis used propaganda to portray their leaders, such as Adolf Hitler, as strong and charismatic. This helped to create a sense of admiration and loyalty among the German people.

Link: https://encyclopedia.ushmm.org/content/en/article/nazi-propaganda

Book: State of Deception: The Power of Nazi Propaganda

3. Disliking/Hating Tendency: This tendency refers to negative feelings towards people who are perceived as different or threatening.

Example - The Rwandan genocide was sparked by a campaign of hate speech and propaganda that demonized the Tutsi people. This led to the deaths of over 800,000 Tutsis in just 100 days

4. Doubt-Avoidance Tendency: This tendency refers to the tendency to avoid questioning the prevailing narrative or belief.

Example - Enron executives continued to invest in risky ventures even when it was clear that the company was in financial trouble. This was because they had already invested so much money and prestige into the company.

5. Inconsistency-Avoidance Tendency: This tendency refers to the tendency to interpret information in a way that supports pre-existing beliefs.

Example - Voters ignoring contradictory evidence and rationalizing their support for their chosen candidate during the 2016 US Presidential Election.

6. Curiosity Tendency: This tendency refers to the tendency to seek out new information and experiences.

Exmaple - The Apollo 11 moon landing was one of the most watched television events in history. People from all over the world were curious to see if humans could land on the moon and return safely.

7. Kantian Fairness Tendency: This tendency refers to the tendency to seek fairness and equal treatment.

Example - The civil rights movement in the United States demanding greater equality and justice for African Americans.

8. Envy/Jealousy Tendency: This tendency refers to the tendency to feel envious or jealous of others.

Example - The Trojan War was sparked by the envy of the Greek goddess Hera towards the Trojan princess Helen.

9. Reciprocation Tendency: This tendency refers to the tendency to reciprocate kindness or generosity.

Example - The Golden Rule found in many cultures and advises people to treat others as they would like to be treated.

10. Influence-from-Mere-Association Tendency: This tendency refers to being influenced by associations with things or people.

Example - The use of celebrities to endorse products in advertising.

11. Simple, Pain-Avoiding Psychological Denial: This tendency refers to the tendency to deny or rationalize evidence that contradicts beliefs.

Example - The underestimation of the threat of fascism in Europe in the early 20th century.

12. Excessive Self-Regard Tendency: This tendency refers to the tendency to believe that one's culture or nation is inherently superior.

Example - The belief in European colonialism and the idea of civilizing "primitive" peoples.

13. Overoptimism Tendency: This tendency refers to the tendency to be overly optimistic about outcomes or situations.

Example - The military leaders’ misconception that World War I would be quick and easy.

14. Deprival-Super reaction Tendency: This tendency refers to the tendency to become overly attached to something that is rare or valuable.

Example - The Dutch Tulip Mania of 1637, where tulip bulbs reached exorbitant prices.

15. Social-Proof Tendency: This tendency refers to the tendency to be influenced by the behavior of those around us.

Example - The "hippie" counterculture of the 1960s rejecting mainstream norms and embracing alternative lifestyles and values.

16. Contrast Misreaction Tendency: This tendency refers to the tendency to overreact to a perceived threat because we compare it to a much worse scenario.

Example - Western countries' preoccupation with the fear of terrorism in the early 2000s, leading to policies such as the Patriot Act in the United States

17. Stress-Influence Tendency: This tendency refers to the tendency to make rash decisions during times of stress or uncertainty.

Example - The Financial Crisis of 2008 was caused by a number of factors, including greed and deregulation. Financial executives were under immense stress to meet their quarterly earnings targets, and this led them to make risky decisions that ultimately contributed to the crisis.

18. Availability Misweighing Tendency: This tendency refers to the tendency to overvalue information that is easily accessible or memorable.

Example - The belief in Iraq's responsibility for the 9/11 attacks and support for the US invasion in 2003.

19. Use-It-or-Lose-It Tendency: This tendency refers to the tendency to keep the mind active in order to resist cognitive decline.

Example - During World War II, pilots were trained to fly their planes regularly in order to maintain their skills. If a pilot did not fly for a period of time, their skills would deteriorate and they would be more likely to make mistakes.

20. Drug Misinfluence Tendency: This tendency refers to the tendency to become reliant on or addicted to drugs that are marketed as safe or pain-relieving.

Example - The tobacco industry exploited the tendency to promote their products. They spread misinformation about the health risks of smoking, and they often used marketing campaigns that targeted young people.

21. Senescence Misinfluence Tendency: This tendency refers to the tendency to make poor decisions due to physical or cognitive decline in old age.

Example - The Age of Exploration was fueled by the belief that Europe was becoming old and decrepit. The belief was that the world is getting worse and that there was a need to take drastic measures to save it.

22. Authority Misinfluence Tendency: This tendency refers to the tendency to defer to those in positions of power or authority even if it contradicts our own moral values.

Example - The Milgram Experiment of 1961 demonstrated how ordinary people could be compelled to commit unethical acts when directed by an authority figure,

23. Twaddle Tendency: This tendency refers to the tendency to be drawn to sensational or emotionally satisfying information rather than factual evidence.

Example - The Soviet Union's suppression of genetics research during the Lysenkoism era.

24. Reason-Respecting Tendency: This tendency refers to the tendency to prioritize logical and empirical data in order to arrive at accurate knowledge.

Example - During the scientific revolution, Galileo Galilei challenged the Church's teaching that the Earth was the center of the universe by using his telescope to observe that Jupiter had moons. This observation supported the Copernican heliocentric model of the solar system, in which the Sun is at the center and the planets orbit around it.

25. Lollapalooza Tendency: This tendency refers to the tendency for multiple psychological biases to work together in order to achieve a positive outcome.

Example - The Civil Rights Act of 1964, which outlawed discrimination based on race, color, religion, sex, or national origin, was the result of multiple psychological biases working in tandem towards a positive outcome.

Welcome everyone to provide more examples.

#brain #bias